August 11, 2026
The Thrift Savings Plan is making changes designed to simplify retirement saving for federal employees while continuing to focus on oversight, efficiency and responsible management of participant dollars.
Jim Kaplan, Director of External Affairs at the TSP, joins Fed Gov Today to discuss how the organization is implementing a provision of the SECURE 2.0 Act, the growth of money flowing into the TSP, progress on audits and the organization’s approach to managing its budget.
One major change involves catch-up contributions for participants age 50 and older. Under SECURE 2.0, certain catch-up contributions must now be made as Roth contributions, meaning participants pay taxes on that money now rather than deferring those taxes.
Kaplan says the TSP is automating that process for federal employees. Once an eligible participant reaches the annual contribution limit, payroll offices automatically direct additional eligible contributions to Roth. If the participant does not already have Roth established within the TSP, it is created automatically.
“There’s nothing that our senior members who are making those catch-up contributions now need to do,” Kaplan says.
Getting there requires coordination between the TSP and federal payroll offices. Kaplan says all payroll offices are now working with the TSP to implement the change automatically, removing the need for participants to take proactive steps themselves.
Kaplan also discusses the TSP’s engagement with Congress as lawmakers consider potential future changes to retirement policy. While there is nothing specific affecting the TSP from discussions surrounding a possible SECURE Act 3.0, Kaplan says the organization regularly communicates with members of Congress and their staffs and watches retirement-related legislation for potential impacts on participants and beneficiaries.
At the same time, more money is moving into the TSP. Through June 2026, participants roll $1.19 billion into the plan, a 14% increase compared with the same period in 2025.
Kaplan says the TSP does not yet have hard statistics explaining the increase, but points to several possible factors. Those include the TSP’s low fees and participant support, as well as its concierge service, which helps people transfer money from outside retirement accounts. More than two-thirds of people rolling money into the TSP use that service, he says.
Assets within several TSP funds are also reaching record levels. Kaplan confirms the C Fund has $500 billion under management, while the I Fund has $150 billion and the L Funds have $300 billion. More than 3 million accounts are now entirely invested in lifecycle funds.
Kaplan also highlights improvements in TSP oversight. External audit recommendations have declined significantly since the transition to the current recordkeeping system, falling from more than 200 annually during the transition to 77 in 2025. The TSP also closes every recommendation from a congressionally directed GAO review.
That focus on stewardship extends to the budget. Kaplan explains that TSP operations are funded through participant fees, creating a direct incentive to control spending.
“Every dollar we don’t spend is another dollar invested for our participants,” Kaplan says.
For Kaplan, coming in under budget is not a problem to solve. It means more money stays where the TSP believes it belongs: in the accounts of participants and beneficiaries, helping them prepare for retirement.